400.8-304. Indorsement.
Indorsement.
400.8-304. (a) An indorsement may be in blank or special. Anindorsement in blank includes an indorsement to bearer. A specialindorsement specifies to whom a security is to be transferred or who haspower to transfer it. A holder may convert a blank indorsement to aspecial indorsement.
(b) An indorsement purporting to be only of part of a securitycertificate representing units intended by the issuer to be separatelytransferable is effective to the extent of the indorsement.
(c) An indorsement, whether special or in blank, does not constitutea transfer until delivery of the certificate on which it appears or, if theindorsement is on a separate document, until delivery of both the documentand the certificate.
(d) If a security certificate in registered form has been deliveredto a purchaser without a necessary indorsement, the purchaser may become aprotected purchaser only when the indorsement is supplied. However,against a transferor, a transfer is complete upon delivery and thepurchaser has a specifically enforceable right to have any necessaryindorsement supplied.
(e) An indorsement of a security certificate in bearer form may givenotice of an adverse claim to the certificate, but it does not otherwiseaffect a right to registration that the holder possesses.
(f) Unless otherwise agreed, a person making an indorsement assumesonly the obligations provided in section 400.8-108 and not an obligationthat the security will be honored by the issuer.
(L. 1963 p. 503 § 8-304, A.L. 1992 S.B. 448, A.L. 1997 S.B. 6)*No continuity with § 400.8-304 as repealed by L. 1997 S.B. 6 § A.